Financials

in Fact sheets

Operating revenue
2020 in $M 2019 in $M 2018 in $M
Operating revenue (GAAP) $15,355 $43,259 41,303
Operating expense
2020 in $M 2019 in $M 2018 in $M
Operating expense (GAAP) $21,712 38,958 38,074
Less: Special charges (A) 2,616 −246 −487
Equals: Operating expense, excluding special operating expense (non-GAAP) 24,328 38,712 37,587
Less: Employee salaries and related costs −9,522 −12,071 −11,458
Equals: Non-labor operating costs 14,806 26,641 26,129
Operating income
2020 in $M 2019 in $M 2018 in $M
Operating income (GAAP) −6,357 4,301 3,229
Add: Operating expense: special charges (A) −2,616 246 487
Equals: Operating income, excluding special operating expense (non-GAAP) −8,973 4,547 3,716
Net income
2020 in $M 2019 in $M 2018 in $M
Net income (GAAP) −7,069 3,009 2,122
Add/less: Operating and nonoperating expenses: special charges, net of income taxes −634 72 377
Add/less: Economic hedge adjustment: Prior period gains/losses on fuel contracts settled in the current period 0 0 0
Add/less: Interest expense on ERJ 145 finance lease 0 64 26
Add/less: Less: Income tax benefit related to adjustments on ERJ145 leases 0 −35 −6
Equals: Adjusted net income (non-GAAP) −7,703 3,110 2,519

Operating and nonoperating expenses: special charges

Operating and nonoperating special charges, net
2020 in $M 2019 in $M 2018 in $M
Operating expense: special charges −2,616 246 487
Severance and benefit costs 575 16 41
Impairment of assets 318 171 377
Termination of engine maitenance service agreement 0 0 64
Labor agreement costs 0 0 0
Cleveland airport lease restructuring 0 0 0
Sale of assets and other special gains/losses, net 27 59 5
CARES Act grant −3,536 0 0
Nonoperating expenses: special charges, net of income taxes
2020 in $M 2019 in $M 2018 in $M
Nonoperating expense: special charges, net of income taxes 1,982 −174 −110
Unrealized (gains) losses on investments, net 194 −153 5
Loss on extinguishment of debt and other 0 0 0
Nonoperating credit loss on BRW Term Loan and related guarantee 697 0 0
Nonoperating special termination benefits and settlement losses 687 0 0
Income tax benefit related to special charges 404 −21 −110
Income tax benefit associated with special tax adjustment 0 0 −5
Total operating and nonoperating expenses: special charges, net of income taxes
2020 in $M 2019 in $M 2018 in $M
Total operating and nonoperating special charges, net −634 72 377

Note: Pursuant to SEC Regulation G, UAL has included the above reconciliation of reported Non-GAAP financial measures to comparable financial measures reported on a GAAP basis. UAL believes that adjusting for special items is useful to investors because special charges are indicative of UAL’s ongoing performance. UAL believes that adjusting for unrealized (gains) losses on investments, net is useful to investors because those unrealized gains or losses may not ultimately be realized on a cash basis. UAL believes that adjusting for interest expense related to finance leases of Embraer ERJ 145 aircraft is useful to investors because of the accelerated recognition of interest expense. For additional information related to special items, see the 2019 Annual Report on Form 10-K.